What is costs that must be capitalized in SAP CO-PC - Product Cost Controlling?

SAP Term: costs that must be capitalized

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: Costs that must be capitalized under commercial and tax law. For the calculation of work in process and for results analysis, you specify the amount of costs that must be capitalized.

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• Key Concepts: 
  Costs that must be capitalized are costs that are incurred in the production of a product or service and must be recorded as an asset on the balance sheet. These costs include the cost of materials, labor, and overhead associated with the production process. In SAP Product Cost Controlling (CO-PC), these costs are tracked and managed to ensure that they are properly accounted for in the financial statements. 
  
  How to use it: 
  In SAP Product Cost Controlling, costs that must be capitalized are tracked and managed using cost elements. Cost elements are used to categorize and track different types of costs, such as material costs, labor costs, and overhead costs. The cost elements are then used to calculate the total cost of a product or service. This total cost is then used to determine the amount of capitalization required for the product or service. 
  
  Tips & Tricks: 
  When tracking and managing costs that must be capitalized in SAP Product Cost Controlling, it is important to ensure that all relevant costs are included in the calculation. This includes both direct and indirect costs associated with the production process. Additionally, it is important to ensure that all cost elements are properly categorized so that they can be accurately tracked and managed. 
  
  Related Information: 
  For more information on SAP Product Cost Controlling, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_PRODUCT_COST_CONTROLLING/latest/en-US. Additionally, there are many online resources available that provide detailed information on how to use SAP Product Cost Controlling for tracking and managing costs that must be capitalized.